Davos main street filled with crypto devotees at WEF
Bitcoin, which was worth $30,332 on Monday, fell to its lowest levels since December 2020 earlier in May
23 May 2022 - 11:18
byJessica DiNapoli
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A cyclist passes a banner for Circle, a cryptocurrency company, ahead of the WEF in Davos, Switzerland, on May 21 2022. Picture: Hollie Adams/Bloomberg
Davos, Switzerland — A free bitcoin pizza stall and a “Liquidity Lounge” were among the treats on offer for attendees at 2022’s World Economic Forum (WEF) meeting in Davos, where blockchain and cryptocurrency firms have taken over its main street, despite a recent crash in digital coin values.
Executives from the crypto sector have descended on the annual gathering of business leaders and politicians in the Swiss Alpine resort, seeking to encourage faster adoption of their technology, which is largely unregulated.
The crypto crowd’s prominence at Davos, while largely on the sidelines of the main event, comes as cryptocurrencies shed $800bn in market value earlier in May.
Small traders have flocked to crypto in the hope of quick returns, despite warnings from regulators that the emerging assets can be high risk. Luna, until recently the eighth-biggest digital coin and backed by institutional crypto investors, has shed nearly all of its value.
“What surprised me was just how fast it completely imploded into nothing,” Jeremy Allaire, CEO and cofounder of Circle, whose USDC stablecoin is pegged to the US dollar, said of Luna's collapse.
“To see something that seemed like an apparent, high growth competitive thing just completely implode to zero in 72 hours, I've never seen anything like that,” he said.
But recent losses have not dented the crypto companies’ plans to show off their products and services.
Securrency, a digital market infrastructure backed by Abu Dhabi, came to Davos for the first time this year “to build relationships and network” and show how it can bridge new technologies and traditional finance, said CEO Dan Doney.
The company has set up its own agenda of panels on digital currency, in the style of the World Economic Forum’s, just outside the security cordon for the main conference centre.
Tether, one of the world's largest stablecoins, offered passers-by free slices to celebrate bitcoin Pizza Day on May 22, when in 2010 Lazlo Hanyecz paid for two pizzas with 10,000 bitcoin, worth about $41 at the time.
Bitcoin, which was worth $30,332 on Monday, fell to its lowest levels since December 2020 earlier in May. The world’s largest cryptocurrency had hit a record high of $69,000 in November.
“We're used to this, and as the market gets bigger, the peaks and valleys will be smoother,” said Cliff Sarkin, COO of CasperLabs, a provider of blockchain technology to businesses, which is hosting speakers and events.
The token tied to Casper's technology has also taken a hit, Sarkin said.
The WEF, which typically caters to the financial elite including major banks such as Citigroup to Credit Suisse , is holding panels on cryptocurrencies’ carbon footprint and future and one on decentralised finance.
“It’s been rising outside and inside the gates,” said Stan Stalnacker, chief strategy officer at social network Hub Culture, which also operates a digital currency, referring to crypto’s presence in the conference and on its sidelines.
Stalnacker estimated that about 50% of the town's storefronts have been occupied by blockchain or cryptocurrency firms for the duration of the event.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Davos main street filled with crypto devotees at WEF
Bitcoin, which was worth $30,332 on Monday, fell to its lowest levels since December 2020 earlier in May
Davos, Switzerland — A free bitcoin pizza stall and a “Liquidity Lounge” were among the treats on offer for attendees at 2022’s World Economic Forum (WEF) meeting in Davos, where blockchain and cryptocurrency firms have taken over its main street, despite a recent crash in digital coin values.
Executives from the crypto sector have descended on the annual gathering of business leaders and politicians in the Swiss Alpine resort, seeking to encourage faster adoption of their technology, which is largely unregulated.
The crypto crowd’s prominence at Davos, while largely on the sidelines of the main event, comes as cryptocurrencies shed $800bn in market value earlier in May.
Small traders have flocked to crypto in the hope of quick returns, despite warnings from regulators that the emerging assets can be high risk. Luna, until recently the eighth-biggest digital coin and backed by institutional crypto investors, has shed nearly all of its value.
“What surprised me was just how fast it completely imploded into nothing,” Jeremy Allaire, CEO and cofounder of Circle, whose USDC stablecoin is pegged to the US dollar, said of Luna's collapse.
“To see something that seemed like an apparent, high growth competitive thing just completely implode to zero in 72 hours, I've never seen anything like that,” he said.
But recent losses have not dented the crypto companies’ plans to show off their products and services.
Securrency, a digital market infrastructure backed by Abu Dhabi, came to Davos for the first time this year “to build relationships and network” and show how it can bridge new technologies and traditional finance, said CEO Dan Doney.
The company has set up its own agenda of panels on digital currency, in the style of the World Economic Forum’s, just outside the security cordon for the main conference centre.
Tether, one of the world's largest stablecoins, offered passers-by free slices to celebrate bitcoin Pizza Day on May 22, when in 2010 Lazlo Hanyecz paid for two pizzas with 10,000 bitcoin, worth about $41 at the time.
Bitcoin, which was worth $30,332 on Monday, fell to its lowest levels since December 2020 earlier in May. The world’s largest cryptocurrency had hit a record high of $69,000 in November.
“We're used to this, and as the market gets bigger, the peaks and valleys will be smoother,” said Cliff Sarkin, COO of CasperLabs, a provider of blockchain technology to businesses, which is hosting speakers and events.
The token tied to Casper's technology has also taken a hit, Sarkin said.
The WEF, which typically caters to the financial elite including major banks such as Citigroup to Credit Suisse , is holding panels on cryptocurrencies’ carbon footprint and future and one on decentralised finance.
“It’s been rising outside and inside the gates,” said Stan Stalnacker, chief strategy officer at social network Hub Culture, which also operates a digital currency, referring to crypto’s presence in the conference and on its sidelines.
Stalnacker estimated that about 50% of the town's storefronts have been occupied by blockchain or cryptocurrency firms for the duration of the event.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Vaccine equity a must to end pandemic, WHO tells online Davos meeting
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.